Silver X Mining Reports Pre-Tax Profitability Amid Operational Challenges

Silver X Mining Corp. reported pre-tax profitability for the six months ended June 30, 2025, marking a significant turnaround from the $539,000 loss recorded during the same period in 2024. The company generated $166,000 in pre-tax income during the first half of 2025, representing a 131% improvement year-over-year. This financial performance occurred despite a 9% decline in processed tonnage, dropping from 82,505 tons in the first half of 2024 to 75,099 tons in 2025.

The company's improved profitability stems primarily from cost management strategies that reduced expenses significantly. Cost of sales decreased by $1.5 million (14%) from $10.5 million in 2024 to $9.1 million in 2025, largely attributed to an 82% reduction in depreciation expense. This reduction resulted from increased Measured and Indicated Mineral Resources, which serve as the basis for depreciation calculations. General and administrative expenses also declined by 26% during the period.

Operational metrics showed mixed results, with average silver equivalent head grades declining by 12.0% for the six-month period compared to 2024. The second quarter of 2025 specifically saw processed tonnage decrease by 22% to 34,899 tons compared to 44,601 tons in the second quarter of 2024. Despite these challenges, the company completed 1,788 meters of mine development during the first quarter, expanding mining operations and accessing higher-grade target areas.

CEO Jose Garcia commented on the company's progress, stating that Silver X continues to make steady improvements in operating income, pre-tax earnings, and EBITDA. The company believes that additional capital investment could unlock the full potential of what it describes as "one of Peru's most prolific yet underdeveloped silver and gold districts." The Nueva Recuperada Project represents a significant opportunity in the mining sector, particularly as global demand for silver continues to grow in industrial and technological applications.

Financial performance showed operating income increased nearly 200% in the first half of 2025 compared to the same period in 2024. Second quarter operating income specifically increased 55% to $847,000 compared with $547,000 in the second quarter of 2024. Net losses decreased by 71% to $410,000 for the six months ending June 30, 2025, compared to a loss of $1.4 million in the prior year period. The company maintained positive EBITDA throughout the reporting period, though it declined from previous levels.

The company's All-In Sustaining Cost (AISC) per silver equivalent ounce produced increased to $28.50 for the six months ending June 30, 2025, representing a 33.4% increase compared to $21.30 for the same period in 2024. This measure, calculated based on guidance published by the World Gold Council and used as a standard by the Silver Institute, reflects the capital expenditure deployed in developing the Tangana Mining Unit. For detailed reconciliations to IFRS measures, investors can review the Management's Discussion and Analysis available at https://www.sedarplus.ca.

Silver X's performance demonstrates the challenges and opportunities in junior mining operations, where balancing development costs with current production remains critical. The company's ability to achieve profitability despite lower production volumes suggests improved operational efficiency and cost management. As mining companies face increasing pressure to demonstrate financial sustainability while meeting environmental and community standards, Silver X's results provide insights into the sector's evolving dynamics.

The company's focus on the 20,472-hectare Nueva Recuperada Project in Central Peru positions it within a region known for mineral wealth but requiring significant investment for development. With 2,253 exploration meters drilled during the second quarter of 2025, in line with the company's 8,000-meter plan for the year, Silver X continues to invest in future growth while maintaining current operations. The financial results suggest that disciplined execution of development strategies can yield profitability even during transitional phases in mining operations.